Correlation Between Changshu Ruite and Advanced Micro
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By analyzing existing cross correlation between Changshu Ruite Electric and Advanced Micro Fabrication, you can compare the effects of market volatilities on Changshu Ruite and Advanced Micro and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Changshu Ruite with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Ruite and Advanced Micro.
Diversification Opportunities for Changshu Ruite and Advanced Micro
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changshu and Advanced is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Ruite Electric and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri and Changshu Ruite is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Changshu Ruite Electric are associated (or correlated) with Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of Changshu Ruite i.e., Changshu Ruite and Advanced Micro go up and down completely randomly.
Pair Corralation between Changshu Ruite and Advanced Micro
Assuming the 90 days trading horizon Changshu Ruite is expected to generate 6.3 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Changshu Ruite Electric is 1.55 times less risky than Advanced Micro. It trades about 0.04 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 19,243 in Advanced Micro Fabrication on September 1, 2024 and sell it today you would earn a total of 2,957 from holding Advanced Micro Fabrication or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Changshu Ruite Electric vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Changshu Ruite Electric |
| Advanced Micro Fabri |
Changshu Ruite and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Ruite and Advanced Micro
The main advantage of trading using opposite Changshu Ruite and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Ruite position performs unexpectedly, Advanced Micro can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Advanced Micro will offset losses from the drop in Advanced Micro's long position.| Changshu Ruite vs. Cultural Investment Holdings | Changshu Ruite vs. Gome Telecom Equipment | Changshu Ruite vs. Bus Online Co | Changshu Ruite vs. Holitech Technology Co |
| Advanced Micro vs. Industrial and Commercial | Advanced Micro vs. Kweichow Moutai Co | Advanced Micro vs. Agricultural Bank of | Advanced Micro vs. China Mobile Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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